Net profits in Tata Motors fell to Rs 2769 crores for the quarter ending June, 2015 compared to Rs 5398 crores in the corresponding period of last year, due to falling sales of Jaguar Landrover.
Lower revenue was partially offset by strong revenue growth in standalone business on the back of continued M&HCV growth.
Fleet replacement demand mainly in the high tonnage segment, continued to support the Company sales growth of 20.7% Y-o-Y in the domestic MHICV segment in the quarter.
However, the domestic LCV segments (mainly the SCV) continued to remain weak, witnessing a de-growth of 19.0% Y-o-Y, due to the tough financing environment and lack of last mile load availability. Exports of the commercial vehicles saw strong growth of 38.0% Y-o-Y in the quarter.
The profits of Tata Motors was below estimates and the stock price of Tata Motors may react negatively to the results on Monday.